If the ePub books are DRM free, you can still load them to the Kindle via the USB cable after converting them in Calibre, or email them to the Kindle (no charge if you are using wifi). So I'm not sure why the Kindle wouldn't work for you.

Very true. In that respect, it would work just as well as my Nook, with a few more benefits (better screen, lighter, longer battery, etc). It's now just a question of whether or not I want to spend an additional $140 (plus more for a cover) when I already have a Nook and a cover.

Ahhh who am I kidding? I always have to have the latest and greatest, even if the upgrade is not that substantial. I waited in line for an iPhone 4, even though my iPhone 3Gs was plenty good enough. haha. I'll probably break down and buy the K3, but keep my nook to hold me over while I wait for Amazon to ship.